discretionary income

noun

: income that is left after paying for things that are essential, such as food and housing
She has enough discretionary income to pay for a nice vacation each year.

Examples of discretionary income in a Sentence

Recent Examples on the Web
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Pay 10 percent of discretionary income for 20 years, then any remaining balance is forgiven. Jill Schlesinger, Mercury News, 6 July 2026 Under the terms of IBR, borrowers pay 10% of their discretionary income each month if their loans were taken out on or after July 1, 2014. Kamaron McNair,annie Nova, CNBC, 6 July 2026 This is where a lot of American consumer discretionary income is going right now. Boaz Sobrado, Forbes.com, 30 June 2026 The plan, which is geared toward borrowers with high debt relative to their income, can allow monthly payments of either 10% or 15% of one’s discretionary income, with loan forgiveness eligibility within 25 years. Erik Ortiz, NBC news, 28 June 2026 See All Example Sentences for discretionary income

Cite this Entry

“Discretionary income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discretionary%20income. Accessed 11 Jul. 2026.

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